NYSE:BRK.B stands out as a stock that provides good value for the fundamentals it showcases.

Last update: Nov 1, 2023

Uncover the hidden value in BERKSHIRE HATHAWAY INC-CL B (NYSE:BRK.B) as our stock screening tool recommends it as an undervalued choice. NYSE:BRK.B maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

What does the Valuation looks like for NYSE:BRK.B

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:BRK.B has received a 8 out of 10:

With a Price/Earnings ratio of 0.02, the valuation of BRK.B can be described as very cheap.
Based on the Price/Earnings ratio, BRK.B is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
BRK.B is valuated cheaply when we compare the Price/Earnings ratio to 22.86, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 0.01, which indicates a rather cheap valuation of BRK.B.
BRK.B's Price/Forward Earnings ratio is rather cheap when compared to the industry. BRK.B is cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 18.20. BRK.B is valued rather cheaply when compared to this.
Based on the Enterprise Value to EBITDA ratio, BRK.B is valued cheaper than 84.16% of the companies in the same industry.
BRK.B's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BRK.B is cheaper than 69.31% of the companies in the same industry.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of BRK.B may justify a higher PE ratio.

Looking at the Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:BRK.B has earned a 7 out of 10:

With an excellent Return On Assets value of 8.34%, BRK.B belongs to the best of the industry, outperforming 86.14% of the companies in the same industry.
With an excellent Return On Equity value of 16.09%, BRK.B belongs to the best of the industry, outperforming 82.18% of the companies in the same industry.
BRK.B has a Return On Invested Capital of 3.54%. This is in the better half of the industry: BRK.B outperforms 73.27% of its industry peers.
The last Return On Invested Capital (3.54%) for BRK.B is above the 3 year average (3.32%), which is a sign of increasing profitability.
BRK.B has a better Profit Margin (26.09%) than 82.18% of its industry peers.
In the last couple of years the Operating Margin of BRK.B has grown nicely.
BRK.B's Gross Margin has improved in the last couple of years.

A Closer Look at Health for NYSE:BRK.B

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:BRK.B has achieved a 5 out of 10:

BRK.B has a better Altman-Z score (1.63) than 71.29% of its industry peers.
Looking at the Debt to FCF ratio, with a value of 4.83, BRK.B is in the better half of the industry, outperforming 66.34% of the companies in the same industry.
A Debt/Equity ratio of 0.23 indicates that BRK.B is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.23, BRK.B is doing good in the industry, outperforming 61.39% of the companies in the same industry.
BRK.B has a better Current ratio (1.47) than 61.39% of its industry peers.

How do we evaluate the Growth for NYSE:BRK.B?

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:BRK.B has received a 6 out of 10:

BRK.B shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.09%, which is quite good.
The Earnings Per Share has been growing by 18.98% on average over the past years. This is quite good.
BRK.B shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.03%.
Based on estimates for the next years, BRK.B will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.50% on average per year.
BRK.B is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.58% yearly.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

Check the latest full fundamental report of BRK.B for a complete fundamental analysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.